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  • Difference Between NGO and PVT Co.

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    CA Pushpak Mishra
    14 vizualizări6 pagini
    A section 8 company can be registered to promote charitable causes without a profit motive, while a private company aims to generate profits. Section 8 companies cannot distribute profits as dividends, have fewer financial reporting requirements, and are exempt from paying taxes if they use grants for permitted activities. In contrast, private companies must generate revenue, can distribute profits, have more stringent financial reporting and board meeting rules, and do not receive tax exemptions. Key differences between the two types of companies include their permitted activities, financial statements, revenue generation ability, and directorship rules.

    Descriere originală:

    It describes the difference between Non Government Organisation and Private Company

    Titlu original

    Difference Between NGO and Pvt Co.

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    A section 8 company can be registered to promote charitable causes without a profit motive, while a private company aims to generate profits. Section 8 companies cannot distribute profits as dividends, have fewer financial reporting requirements, and are exempt from paying taxes if they use grants for permitted activities. In contrast, private companies must generate revenue, can distribute profits, have more stringent financial reporting and board meeting rules, and do not receive tax exemptions. Key differences between the two types of companies include their permitted activities, financial statements, revenue generation ability, and directorship rules.

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    © All Rights Reserved
    Descărcați ca PPTX, PDF, TXT sau citiți online pe Scribd
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    14 vizualizări6 pagini

    Difference Between NGO and PVT Co.

    Încărcat de

    CA Pushpak Mishra
    A section 8 company can be registered to promote charitable causes without a profit motive, while a private company aims to generate profits. Section 8 companies cannot distribute profits as dividends, have fewer financial reporting requirements, and are exempt from paying taxes if they use grants for permitted activities. In contrast, private companies must generate revenue, can distribute profits, have more stringent financial reporting and board meeting rules, and do not receive tax exemptions. Key differences between the two types of companies include their permitted activities, financial statements, revenue generation ability, and directorship rules.

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    din 6

    DIFFERENCE BETWEEN

    SECTION 8 COMPANY & A


    PUBLIC/PRIVATE
    COMPANY
    Private Company
    Areas of Comparison Section 8 Company

    A section 8 company can be


    registered as a limited company for
    promoting commerce, art, science,
    A private/Public limited company
    religion, charity or any other useful
    Permitted scope of Activities is always established for profit
    purpose.
    making objective.
    The Company needs to apply its
    profits if any or other income in
    promoting its objects.

    The main components of the


    The main components of the
    Financial Statement of any
    financial statement of a section 8
    company other than section 8
    Financial Statements companies are-Income &
    companies are-Statement of
    Expenditure Account, Receipts &
    Profit & Loss, Balance Sheet &
    Payment Account & Balance Sheet.
    Cash flow Statement.

    A Section 8 company is not A company other than section 8


    permitted to sell any product or company must generate revenue
    Revenue services to generate revenue. by selling any product or
    Any donation or grants received services.
    are recorded as revenue.
    Areas of Comparison Section 8 Company Private Company

    The profit generated by a


    No section 8 company is company other than a section 8
    Dividend distribution permitted to distribute the company can be distributed as
    surplus earned as dividend. dividend between the
    shareholders.

    There is no limit for the


    The maximum number of
    maximum number of directors for
    directors are restricted to 15 in
    a Section 8 company under
    case of a limited or private
    section 149(1)(b). However as
    Number of Directors limited company & to increase
    per section 149(1)(a) the
    the number of directors the
    minimum number of directors are
    company must pass a special
    applicable & same as a Limited
    resolution.
    company.
    Number of Board Meetings As per section 173(1) of A company other than a Section
    Section 173(1) & (5) Companies Act ,2013 the 8 company must hold minimum
    minimum number of Board of 4 board meeting in a year &
    meeting for a section 8 company the interval between each
    is 2 in a year subject to not less meeting must not more than 120
    than 90 days interval between days.
    each meeting. The company has
    to hold the meetings bi-annually.
    Areas of Comparison Section 8 Company Private Company/Public company

    Interest Charged-section Section 8 company in which 26%


    186(7) or more of paid-up share capital is
    held by the central government or
    one or more state governments or
    both, may give interest-free loan
    for funding industrial R&D projects
    in furtherance of its objects as
    stated in its Memorandum of
    Association.

    No of directorships (sec Section 165 which refers to the As per section 165 no person can be
    165) limit of maximum number of appointed as a director in more than
    directorship which is not 20 companies in case of a public
    applicable for a Section 8 company
    company.
    Consent to act as a Section 152 which refers to the Every person shall furnish to the
    director-Section 152(5) consent of the director is not company his consent to act as a
    applicable on section 8 company. director. The consent must be
    furnished on or before his
    appointment as a director. The
    consent letter needs to be filed with
    ROC within 30 days of appointment.
    Private Company/Public
    Areas of Comparison Section 8 Company
    company

    Tax exemption If a section 8 company utilizes No such benefit is applicable for


    85% of the grants received on a company other than a section 8
    the same year then the surplus company.
    earned gets tax exemption.

    Company Secretary -Section A section 8 company can appoint It’s compulsory for a company
    2(24) any person as a company other than a section 8 company
    secretary. It's not mandatory for to appoint a company secretary
    that person to be a member of who must be a member of ICSI.
    ICSI.

    Minimum Paid up share capital The minimum paid up share The amount of minimum paid up
    capital is not applicable. share capital must be satisfied as
    per section 2(68) & 2(71).
    THANK-YOU

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